Risk to growth could rise if martial law fear spreads

The Philippine economy is set to continue holding up well in the short term as economic reform progresses, but greater risk lies over the medium term if investor caution over the threat of a nationwide martial law and other policy concerns prevail, Capital Economics said in its latest report on the country.

“If investment starts to slow sharply, medium-term growth prospects will suffer,” the London-based research consultancy warned said in its report, Emerging Asia Economic Weekly, released over the weekend.